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Margaritaville upstairs on the balcony as already suggested. We sat outside at the La Salsa Cantina at the Forum shops. Got margaritas, chips and salsa, lots of interesting people watching. People chasing down characters for pictures (really??). Cabo Wabo at Planet Hollywood and Diablo's at Monte Carlo both have outdoor tables looking out on the strip for good people watching and margaritas as well.

I do like Margaritaville, however the king of Margaritasippin, people watching is Cabo Wabo in front of PH. The stools are even facing the strip, we have witnessed fights, arrests, and of course the good stuff too. Great view of Cosmo and Bellagio, one of the top two intersections on the strip!